Recent theoretical work has examined the spatial distribution of unemployment using theefficiency wage model as the mechanism by which unemployment arises in the urbaneconomy. This paper extends the standard efficiency wage model in order to allow forbehavioral substitution between leisure time...

There is substantial empirical evidence showing that peer effects matter in many activities. The workhorse model in empirical work on peer effects is the linear-in-means (LIM) model, whereby it is assumed that agents are linearly affected by the mean action of their peers. We develop a new...

Delinquents are embedded in a network of relationships. Social ties among delinquents are modeled by means of a graph where delinquents compete for a booty and benefit from local interactions with their neighbors. Each delinquent decides in a non-cooperative way how much delinquency effort he...

Although the linear-in-means model is the workhorse model in empirical work on peer effects, its theoretical properties are understudied. In this study, we develop a social-norm model that provides a microfoundation of the linear-in-means model and investigate its properties. We show that...

We develop a model in which ethnic minorities can either assimilate to the majority's norm or reject it by trading off higher productivity and wages with a greater social distance to their culture of origin. We show that "oppositional" ethnic minorities reside in more segregated areas, have...

We develop a theoretical model in which technology adoption decisions are based on the information received from others about the quality of a new technology and on their risk attitudes. We test the predictions of this model using a randomized field experiment in Bangladesh. We show that the...

Social network analysis can help us understand more about the root causes of delinquent behavior and crime and provide practical guidance for the design of crime prevention policies. To illustrate these points, we first present a selective review of several key studies and findings from the...

This paper analyzes the role of networks in the spatial diffusion of local economic shocks in Africa. We show that road and ethnic connectivity are particularly important factors for diffusing economic spillovers over longer distances. We then determine the key players, i.e., which districts are...

We consider a model where each individual (or ethnic minority) is embedded in a network of relation-ships and decides whether or not she wants to be assimilated to the majority norm. Each individual wants her behavior to agree with her personal ideal action or norm but also wants her behavior to...

This study investigates whether exposure to peer depression in adolescence affects own depression in adulthood. We find a significant long-term depression peer effect for females but not for males in a sample of U.S. adolescents who are followed into adulthood. An increase of one standard...